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Precision BioSciences(DTIL) - 2024 Q3 - Quarterly Report
DTILPrecision BioSciences(DTIL)2024-11-04 12:15

Financial Performance - The company reported a net loss per share of 2.25forthecurrentquarter,comparedtoanetlossof2.25 for the current quarter, compared to a net loss of 2.10 in the previous quarter[14]. - The net loss for the three months ended September 30, 2024, was 16,425million,comparedtoanetlossof16,425 million, compared to a net loss of 8,079 million in the same period of 2023, indicating a worsening of 103.1%[16]. - For the nine months ended September 30, 2024, the net income was 24,912,000comparedtoanetlossof24,912,000 compared to a net loss of 45,030,000 in the same period of 2023, indicating a significant improvement[20]. - The basic net loss per share for the three months ended September 30, 2024, was (2.25),comparedto(2.25), compared to (2.10) for the same period in 2023[130]. Revenue and Growth - Revenue for the three months ended September 30, 2024, was 13,120million,anincreasefrom13,120 million, an increase from 8,079 million in the same period of 2023, representing a year-over-year growth of 62.5%[16]. - The Company recognized revenue of 52.7millionunderthePrevailAgreementduringtheninemonthsendedSeptember30,2024,comparedto52.7 million under the Prevail Agreement during the nine months ended September 30, 2024, compared to 23.4 million for the same period in 2023[99]. - Revenue recognized under the TG License Agreement for the nine months ended September 30, 2024, was 8.0million,withnorevenuerecognizedinthethirdquarterof2024[87].−RevenuerecognizedundertheNovartisAgreementforthethreemonthsendedSeptember30,2024,was8.0 million, with no revenue recognized in the third quarter of 2024[87]. - Revenue recognized under the Novartis Agreement for the three months ended September 30, 2024, was 0.6 million, a decrease from 7.6millionforthesameperiodin2023[95].AssetsandLiabilities−AsofSeptember30,2024,totalassetsdecreasedto7.6 million for the same period in 2023[95]. Assets and Liabilities - As of September 30, 2024, total assets decreased to 153.258 million from 159.781millionasofDecember31,2023[12].−Currentliabilitiessignificantlyreducedto159.781 million as of December 31, 2023[12]. - Current liabilities significantly reduced to 11.982 million from 49.987millionasofDecember31,2023[12].−Totalstockholders′equityincreasedto49.987 million as of December 31, 2023[12]. - Total stockholders' equity increased to 64.866 million from 18.861millionasofDecember31,2023[13].−Cashandcashequivalentsattheendoftheperiodwere18.861 million as of December 31, 2023[13]. - Cash and cash equivalents at the end of the period were 98,752,000, down from 122,231,000attheendofthepreviousyear[20].OperatingExpenses−Researchanddevelopmentexpensesdecreasedto122,231,000 at the end of the previous year[20]. Operating Expenses - Research and development expenses decreased to 13,084 million for the three months ended September 30, 2024, down from 15,850millioninthesameperiodof2023,areductionof17.515,850 million in the same period of 2023, a reduction of 17.5%[16]. - Total operating expenses for the three months ended September 30, 2024, were 21,851 million, compared to 25,483millioninthesameperiodof2023,reflectingadecreaseof14.425,483 million in the same period of 2023, reflecting a decrease of 14.4%[16]. - The total lease cost for the year 2024 was 2.022 million, a decrease from 2.530millionin2023[72].FundingandCapital−Thecompanywillneedsubstantialadditionalfundingtocontinueitsresearchprogramsandproductdevelopmentactivities[11].−TheCompanyraisedapproximately2.530 million in 2023[72]. Funding and Capital - The company will need substantial additional funding to continue its research programs and product development activities[11]. - The Company raised approximately 37.0 million in net proceeds from the March 2024 Public Offering of 2,500,000 shares at 16.00pershare[79].−Thecompanyisfocusedonraisingadditionalcapitaltofundongoingresearchanddevelopmentandachieveprofitableoperations[22].CompetitionandMarketConditions−Thecompanyfacessignificantcompetitioninrapidlychangingindustries,whichmayimpactitsfinancialcondition[11].−Theregulatorylandscapefortherapeuticproductcandidatesiscomplexandsubjecttochange,whichcouldresultinunexpectedcosts[11].StockandEquity−ThebalanceofcommonsharesasofSeptember30,2023,was3,882,739,reflectinganincreasefrom3,725,689sharesasofDecember31,2022[18].−TheCompanyhasundergonea1−for−30reversestockspliteffectiveFebruary13,2024,adjustingallhistoricalshareamountsaccordingly[27].−AsofSeptember30,2024,therewere29,935stockoptionsoutstandingunderthe2015StockIncentivePlan,withnoremainingstockoptionsavailabletobegranted[104].CashFlowandFinancingActivities−NetcashusedinoperatingactivitiesfortheninemonthsendedSeptember30,2024,was16.00 per share[79]. - The company is focused on raising additional capital to fund ongoing research and development and achieve profitable operations[22]. Competition and Market Conditions - The company faces significant competition in rapidly changing industries, which may impact its financial condition[11]. - The regulatory landscape for therapeutic product candidates is complex and subject to change, which could result in unexpected costs[11]. Stock and Equity - The balance of common shares as of September 30, 2023, was 3,882,739, reflecting an increase from 3,725,689 shares as of December 31, 2022[18]. - The Company has undergone a 1-for-30 reverse stock split effective February 13, 2024, adjusting all historical share amounts accordingly[27]. - As of September 30, 2024, there were 29,935 stock options outstanding under the 2015 Stock Incentive Plan, with no remaining stock options available to be granted[104]. Cash Flow and Financing Activities - Net cash used in operating activities for the nine months ended September 30, 2024, was 39,762,000, a decrease from 75,691,000inthesameperiodof2023[20].−Thecompanyreportedanetcashprovidedbyfinancingactivitiesof75,691,000 in the same period of 2023[20]. - The company reported a net cash provided by financing activities of 44,530,000 for the nine months ended September 30, 2024, compared to 2,559,000inthesameperiodof2023[20].−TheCompany’s2024TermLoanhasaprincipalamountof2,559,000 in the same period of 2023[20]. - The Company’s 2024 Term Loan has a principal amount of 22.5 million, used to repay the outstanding balance under the Revolving Line[60]. Future Outlook - The company plans to continue its market expansion and product development strategies to enhance future revenue growth[16]. - The company has incurred significant operating losses since inception and expects to continue incurring losses for the foreseeable future[11]. - The company has a limited operating history, making it difficult to evaluate current business and future prospects[11].